Kamal earned a total of $32500 in 2017. He paid 9% of this amount into his pension. He paid 22% tax on the remainder of his earnings. Calculate the amount left after paying his pension and his tax.
- (a)Kamal earned a total of $32500 in 2017. He paid 9% of this amount into his pension. He paid 22% tax on the remainder of his earnings. Calculate the amount left after paying his pension and his tax.[3]
- (b)Kamal invested $1200 in a savings account paying 1.8% per year compound interest. He left the money in the account for 5 years. Calculate the amount of money in the account at the end of 5 years. Give your answer correct to the nearest cent.[3]
- (c)Kamal also invested some money in a different savings account for 5 years. This account paid 2.1% per year simple interest. At the end of 5 years there was $828.75 in the account. Calculate the amount of money he invested in this account.[3]
- (d)The exchange rate between dollars ($) and pounds (£) is $1 = £0.72. The exchange rate between dollars and euros (€) is $1 = €1.10. Kamal has $275. He changes part of the $275 into pounds and receives £79.20. He changes the remaining dollars into euros. Calculate the amount of money he receives in euros.[3]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [3] M1 for 32500 × 0.91 oe
- [3] M1 for their 29 575 × 0.78 oe
- [3] M2 for 1200 × (1 + 1.8/100)^5 oe
- [3] or M1 for 1200 × (1 + 1.8/100)^k oe where k > 1
- [3] M2 for (100 + 5 × 2.1)/100 x = 828.75 soi
- [3] or B1 for 5 × 2.1 [%] or better soi
- [3] M2 for (275 – 79.20 ÷ 0.72) × 1.10 oe
- [3] or M1 for 79.20 ÷ 0.72 oe
- [3] or (275 – their 110) × 1.10 oe
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